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Considering the relatively poor internet infrastructure of the core Xbox markets (mainly the USA), I'd consider the always on DRM a bit of a strange addition. I'm guessing that it might be a bit of an exaggeration, like one of the services like the online store requiring the connection constantly, but using the blu-ray disks is available offline.

@Peter, it's April 2nd so no April fools, although I suppose this could have been leaked on April 1st and then only spread today. It isn't confirmed by Microsoft anyway so I'm still not taking this as fact.

Sounds unlikely. Building Kinect into the console as the story suggests would make the base unit bulkier, and you'd have to place the console on its side in front of or just below the TV to be able to use it. That's kinda limiting. It seems far more likely they'd bundle a next gen Kinect with the console but keep it as a separate unit that plugs in via a dedicated port.

And ask Ubisoft how always on DRM has been working out for them on PC. Not to mention the risk that if your online authentication service goes down, nobody can play any of their software. Think what happened to PSN last year, or the periods of (sometimes extended) downtime Xbox Live has occasionally suffered over the years. With always on DRM that goes from an annoyance that stops you playing online to a fiasco that renders your entire device completely useless until the service recovers.

On a serious note. I have no doubt that some mangement idiot did indeed think always online DRM is a good idea. I'm also fairly certain that being a management type, everyone else simply nodded and tried to work out how to do it.

Rarely do you see someone sensible turn around and say "Feck off you moron we're supposed to be nurchuring our customers not pissing them off".

If you want any real world proof of this just look at the Vita. Proprietary and overpriced memory cards, Overpriced online versions of the games, two versions that can and will eventually cause a major headache. In no way did either the unit's designers or the programmers of the games and systems suggest any of these things. They don't stop piracy or hackers and only cause problems for legitimate customers.

Then of course there is Ubi softs efforts on PC. Pirates had the system circumvented on day zero and the legitimate paying customers are the ones that have to suffer validation server issues. Install locking etc. etc.

When I see stuff like this it re-inforces the fact that the world needs less management or at the very least they should be treated like the children they are and told to be seen and not heard.

The SLI/Crossfire GPU configuration seems unlikely, the console would need a very good cooling system for something like that and it would also increase the price (especially with the rumour being AMD's 7000 series, which is their latest line of cards).

Well you don`t use cards in a console so you just have to put 2 GPU`s directly on the mainboard, shoudln`t be too different from SLI/Crossfire.

I can`t see a kinect directly implemented in a console so that must be a misunderstanding and more likely something like kinect 2 comes in the package. Kinect needs first of all space because it needs to be able to pan around and it needs to be either at the center below or above the TV and above does work better. Nobody wan`ts to put his console above the TV where it is likely do fall down and break. Also it would be unlikely that all the heat inside the console would be good for the sensor parts.

It seems like insanity to me, but it wouldn't be the first time I've seen a business do something insane.

I'm not sure that "decent broadband" would be such an issue, as neither high bandwidth nor low latency is necessary for license validation. You could use a modem connection, if that was what it came down to.

The big issue is those who can't or don't want to plug it in at all. (Well, that and the huge increase in technical support load.) Unless they're going to do something like put 3G connectivity into the thing for licencing for those without Internet, I don't see how you can get around this.

I wonder what they're planning for region locking, if anything? I'm hoping they remove it (as it pretty much was for physical media for the PS3), since that's my biggest objection to the Xbox 360, and this new generation might be the perfect time to switch away from Sony. (Sony seems to be moving back towards more region protection with the Vita--it's worse than the PSP in that respect.)

Having 2 GPU's doesent make any sense, more silicone,more heat,more chance of breakdowns, more power needed,micro-stuttering, harder to code for and even the best games on pc still only have about 80% scaling.
These observations come from using sli setups on the pc for 6 years since the 7800 GTX through to 560 ti.
The only area where it does make sense is cost, today you can buy 2 nvidia 560 ti's for less than a 580/680 and the 560's will out perform the high end card in 90% of games.

I believe this.
The first function of a console is to act as an anti piracy dongle. So they must do what it takes to achieve this.
For the business model secondhand sales are just the same as piracy, so now the dongle must work against this as well.

The console platform holders are in a difficult place just now as publishers at long last find alternative business models that don't need the anti piracy dongle. How will it be possible to justify the next generation both to those publishers and to consumers?